Examining Local Governments Readiness and Transformation for AI Adoption: A Qualitative Case Study Approach in Public Administration

Artificial intelligence (AI) is increasingly recognized as a transformative force in public administration, yet its adoption in local governments, particularly in developing countries, remains fragmented and uneven. This study examines the administrative readiness of Thai local governments to integrate AI into public management systems, addressing gaps in existing research that often emphasize technical dimensions while neglecting organizational, cultural, and behavioral factors. Employing a qualitative case study approach, data were collected through semi-structured interviews with 25 key informants and analyzed through thematic analysis supported by triangulation and member checking. Findings revealed that AI readiness extends beyond technological capacity to encompass eight interrelated dimensions organized according to the Technology-Organization-Environment (TOE) framework: one technological dimension (technology and infrastructure), five organizational dimensions (human resources, change management readiness, financial resources, leadership and vision, organizational culture), and two environmental dimensions (environmental context, and policy and governance). Of these eight dimensions, two are AI-specific (technology and infrastructure, policy and governance), three are partially AI-specific (human resources, organizational culture, environmental context), and three represent general digital transformation requirements adapted for AI contexts (financial resources, leadership and vision, change management). Analysis through the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) demonstrated that hedonic motivation, price value, and habit formation serve as critical behavioral drivers translating structural readiness into sustained use. Strategic directions proposed through the McKinsey 7S Framework emphasize coherent alignment across organizational elements. This study contributes an integrated framework capturing contextual realities of local governments in developing settings, advancing theoretical discourse while offering practical guidance for fostering sustainable, citizen-centered AI transformation.